The Toronto stock market was slightly lower, supported by strong earnings reports from Canadian Imperial Bank of Commerce and National Bank and major acquisition news from Canada's tech sector.
The S&P/TSX Composite Index docked 34.98 points to begin business Thursday at 11,398.24.
The Canadian dollar was trading lower by 0.18 to 96.92 cents U.S.
CIBC beat analyst expectations, reporting quarterly revenue growth of 2% and a rise in profit of 6%. Its shares triumphed 87 cents in the early going to $71.20. National Bank jumped 13 cents to $73.27, after reporting $553 million in net income for the second quarter of 2012, up 69% from $327 million in the same quarter of 2011.
Shares of San Gold Corp., Reitmans (Canada) and Ivanhoe Mines all declined 2%
Canada’s largest IT services company, CGI Group, plans to more than double the size of its global workforce and total revenue through a friendly deal to acquire U.K.-based firm Logica PLC in a $3.1-billion deal. CGI shares surged 17% at the outset.
On the economic ledger, Statistics Canada said average March weekly earnings of non-farm payroll employees totaled $888.34, up 0.8% from the previous month, or 2.1% on a year-over-year basis.
ON BAYSTREET
The TSX Venture Exchange fell 7.71 points to 1,281.72. The Nasdaq Canada index declined 2.50 points to 353.23
All but four of the 14 Toronto subgroups were in the red in the first hour. Metals and mining stocks sank 2.1%, while global base metals tailed off 1.7%, and materials slid 1%.
The four gainers were led by a 3.2% jump in information technology, while financials inched up 0.4% and consumer staples gained 0.3%.
ON WALLSTREET
U.S. stocks were lower early Thursday, the last day of a wretched month that saw Treasury yields in the U.S. fall to record lows, while Spain and Greece kept contagion worries front and centre
The Dow Jones Industrials lost 49.72 points at the outset to 12,370.14
The S&P 500 erased 8.70 points to 1,304.62. The tech-rich Nasdaq Composite Index deducted 26.06 points to 2,811.30
Thursday's declines were driven by a batch of weak U.S. economic data, including reports on U.S. initial jobless claims and regional manufacturing, which cast a cloud over hopes that the domestic economy is improving.
Shares of Joy Global fell after the mining equipment maker easily beat forecasts but lowered its guidance.
Networking equipment maker Ciena Corp. reported earnings that blew past analysts' estimates and issued a forecast in line with expectations, lifting shares.
Shares of TiVo fell after the DVR maker reported a larger-than-expected quarterly loss after the bell Wednesday.
Lions Gate Entertainment slipped after the film studio reported a net loss for the quarter late Wednesday, citing acquisition costs.
Shares of Facebook edged higher after briefly slipping below $28 U.S. Wednesday.
Investors also continued to keep tabs on Europe's debt crisis.
Germany's unemployment figures, along with a decline in euro-zone inflation, helped lift sentiment in overseas markets. Germany reported an adjusted unemployment rate at a two-decade low of 6.7%.
Later in the day, voters in Ireland are expected to approve more stringent budget rules in a referendum. The struggling country could lose access to additional bailout funds if voters reject the fiscal treaty, so a positive vote could reassure investors. Markets have also been nervous that Greek voters could reject austerity measures and force that country out of the euro-zone.
Meanwhile, investors are still worried about Spain not being able to fund bank bailouts that could reach as much as €100 billion. Yields on 10-year Spanish debt soared to 6.6% Wednesday, but retreated slightly on Thursday.
Economically speaking, gross domestic product for the first quarter was revised lower to 1.9%.
A report on private sector hiring from payroll services firm ADP showed a gain of 133,000 jobs, less than the 157,000 gain forecast by economists.
Additionally, the number of people filing for first-time unemployment benefits in the U.S. rose 10,000 to 383,000 in the latest week, which was higher than the expected 368,000 forecast by analysts.
The latest batch of jobs reports comes before the government's closely-watched monthly jobs report, which is due Friday.
Analysts expect that the U.S. economy added 150,000 jobs in May, including 12,000 government cuts. The unemployment rate is expected to stay at 8.1%.
The Chicago Purchasing Manager Index, which tracks manufacturing activity in much of the Midwest, fell for a third straight month to 52.7, the lowest level since May 2009. The index was expected to come in at 57 for May, up from 56.2 in the month prior. The report is seen an indicator of what will happen with the national reading on manufacturing from the Institute of Supply Management, due on Friday.
Foreclosures accounted for for 26% of home sales during the first three months of the year, according to a report released Thursday by RealtyTrac
The price on the benchmark 10-year U.S. Treasury rose yet again, lowering yields to 1.58% below Wednesday’s record low of 1.62%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil declined $1.13 to $86.70 U.S.
Gold futures for June delivery added $3 to $1,566.40 U.S. an ounce.
